The Discounted Cash Flow (DCF) valuation of Renishaw PLC (RSW.L) is 1,708.46 GBP. With the latest stock price at 2,840.00 GBP, the upside of Renishaw PLC based on DCF is -39.8%.

Is RSW.L a buy or a sell?

Based on the latest price of 2,840.00 GBP and our DCF valuation, Renishaw PLC (RSW.L) is a sell. Selling RSW.L stocks now will result in a potential gain of 39.8%.

	Range	Selected
WACC / Discount Rate	10.6% - 13.0%	11.8%
Long-term Growth Rate	1.0% - 3.0%	2.0%
Fair Price	1,446.32 - 2,121.89	1,708.46
Upside	-49.1% - -25.3%	-39.8%

2,840.00 GBP

Stock Price

1,708.46 GBP

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

RSW.L DCF Valuation: Revenue & Expenses Forecast

(GBP in millions)		Projections

	06-2024	06-2025	06-2026	06-2027	06-2028	06-2029

Revenue	691	742	792	841	865	922
% Growth	0%	7%	7%	6%	3%	7%

Cost of goods sold	(372)	(391)	(409)	(426)	(430)	(448)
% of Revenue	54%	53%	52%	51%	50%	49%

Selling, G&A expenses	(216)	(232)	(248)	(263)	(271)	(288)
% of Revenue	31%	31%	31%	31%	31%	31%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	20	21	22	24	24	26
% of Revenue	3%	3%	3%	3%	3%	3%

Tax expense	(26)	(28)	(32)	(35)	(38)	(42)
Tax rate	21%	20%	20%	20%	20%	20%

Net profit	97	112	126	141	152	169
% Margin	14%	15%	16%	17%	18%	18%